Andrew Bailey warns AI could trigger global market downturn

• Bank of England Governor Andrew Bailey has warned G20 finance ministers that a collapse in the artificial intelligence bubble could trigger a major global financial downturn.
• Writing in his capacity as chairman of the Financial Stability Board, Mr Bailey highlighted risks from high valuations, market concentration, and energy shocks linked to the US-Iran war.
• The warning coincides with Chancellor John Healey announcing a £100 million fund to support British AI start-ups and grow domestic AI capacity.
• The government scheme encourages firms to compete for funding to tackle key challenges, including NHS waiting lists, cybersecurity, and defence.
• Mr Healey said the initiative aims to ensure Britain leads in AI innovation, driving job creation, better public services, and nationwide economic growth.

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Bank of England governor: AI risks forcing global economic downturn